WORK SESSION AGENDA REQUEST

Department, Organization or                                                   Board of Supervisors

Person Making Request:                                                               Meeting Date:

Bob Lee, County Administrator                                                   December 16, 2002

Staff Lead:                                                                                        Department:

Bryan Tippie, Director                                                                     Budget Office

Topic: 

State Revenue Reductions-Response Plan

Topic Description:

Based on the possibility of State revenue reductions a number of Budgetary Strategies were adopted by the Board of Supervisors in September to address the impact.  One of the Strategies was for the County Administrator , by December, to prepare a detailed response plan for FY 2003 following the identification of the areas and amounts of State funding reduction.  The Governor presented his reductions October 15, 2002 .  The impact of the reductions has been assessed and recommendation for further action provided.  The attached briefing sheet highlights the details of these actions.

Requested Action of the Board of Supervisors: 

Convene a work session for staff to update the Board of Supervisors on the State revenue reduction issue and to consider further recommendations on this issue.

Financial Impacts Analysis: 

As reflected on the attached.

Identify Any Other Departments, Organizations or Individuals That Would be Affected by This Request:

 All General County Organizations, School Division, Volunteer Fire and Rescue, Department of Fire and Rescue, Land Fill Enterprise Fund, Warrenton-Fauquier Joint Communications Center .

December 6, 2002

State Revenue Impact-Response Plan

1. Background
1. On October 21^st the Board of Supervisors adopted budgetary strategies in anticipation of State revenue reductions for FY 2003 and FY 2004.  Included, as one of the strategies was the requirement for a response plan to be presented to the Board of Supervisors for its consideration no later then December 2002.
2. Effective immediately upon adoption of the October Resolution six strategies were implemented.

1)      Permanent General Government positions becoming vacant are reviewed by County Administration prior to filling.

2)      No new positions, new programs or expansion of existing programs have occurred.

3)      All capital projects have been reviewed.

4)      A moratorium on further appropriations of unobligated FY 2002 balances was implemented with the exception of $6,364 in Federal Block Grant and State seizure funding.  It should be noted $1.4 million in carryover requests are scheduled for public hearing on December 16^th.  $1.0 million will replenish the County Contingency Reserve.

5)      See Paragraph 1a above.  Request to brief the Board of Supervisors on State revenue response plan.

6)      The State revenue reductions for FY 2004 (to date) are being included in the FY 2004 proposed budget submission.

2. Fiscal Status
1. State Revenue reductions for FY 2003 identified by the Governor 10/15/02.

$149,366         General Fund

      7,758         Fire and Rescue Fund

    12,335         Joint Communication Fund

      2,250         Landfill Enterprise Fund

$171,709         Total Reduction All Funds*

*The School Division has indicated that it will be responsible for any FY 2003 State reductions affecting them.

2. Additional FY 2003 reductions could occur based on the Governor’s budget proposal scheduled for release December 20^th. However the primary emphasis is expected to be on FY 2004.
3. Current General Fund Revenue/Expenditure Forecast.

Revenue above the current budget level,                      
per Revenue Committee (Nov)                                     $888,000
Expenditure above the current
budget level. Projected Tipping Fee
appropriation shortfall.**                                             ($250,000)

                                    Estimated Available Funding to                         $638,000
                                    address further State reductions or
                                    expenditure increases.

** Estimated shortfall is based on increased use of the Convenience Sites by residents of Fauquier County . For the purpose of this document it is assumed all other General Fund appropriations will be utilized (worse case scenario).

Recommendations.

a.       It is recommended that the strategies identified in paragraph 1b above continue with the exception of the moratorium on appropriating FY 2002 Carryover Funds.

b.      In regard to strategy lb2) it is recommended that a new position may be added if supported by the elimination of a currently budgeted position.

c.       Staff provides updates as necessary on any further State revenue reductions.